Citi Business News is reporting that Cal Bank intends to drag University of Ghana to court following the educational institution’s failure to pay back money owed the bank as loan.
Speaking in an exclusive interview with Citi Business New, Managing Director of the bank, Frank Adu noted that the move has become necessary following the delay in the repayment of the loan facility the bank granted the university towards the provision of about 7000 bed capacity hostel facility.
He further explained that in 2011 the University of Ghana contracted a syndicated loan facility from six banks including Cal bank but it is yet to settle the outstanding monies owed the banks.
According to the Cal bank MD, the University of Ghana has shown very low commitment in the repayment process.
“We did have significant real estate exposure three years back and three years on we still have some exposure. The significant portion of it is being paid or it is still current, but we still have a situation with UGEL, the situation there is that the hostel is occupied and the students pay the residential user fees but the University does not service the facility, “he stated.
“There have been several meetings on it and government has decided to take over and settle the six banks involved, we [Cal Bank] haven’t seen the government, seen the steps as expected in settling that debt so we have taken the decision to go to court so very soon CAL bank will own 12,500 beds,” he added.